Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
22 Jun 2026
Case Brief
RBI, by order dated June 15, 2026, imposed a monetary penalty of ₹1 lakh on The Chittoor District Co-operative Central Bank Ltd., Andhra Pradesh. The penalty was imposed after a statutory inspection by NABARD and a subsequent show-cause process, in which RBI held that the bank had sanctioned loans to directors, violating Section 20 read with Section 56 of the Banking Regulation Act, 1949. RBI stated that the penalty is based on deficiencies in statutory compliance and is without prejudice to any other action that may be initiated against the bank.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection by NABARD found contravention of statutory provisions. The sustained charge was that the bank had sanctioned loans related to directors, violating Section 20 read with Section 56 of the Banking Regulation Act, 1949. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Operating Impact
The bank must bear the ₹1 lakh penalty, and the order may leave open the possibility of further RBI action. There is no stated operational restriction or restoration/lifting; the impact is limited to the monetary penalty and compliance signal to the bank.
Regulatory Basis
- Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act)
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 15 Jun 2026
- Effective From
- 15 Jun 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank